Monday, Sept. 13, 2021 – DIA 349.30 +.75%, QQQ 376.33 -.07%, SPY 446.58 +.26%, IWM 222.88 +.57%
No high-impact data was released on the day. Markets were mixed with the DJIA the clear upside leader. WTI crude oil moved higher $70.71 + 1.42% as assessments for hurricane Ida’s damage to production and potential pipeline outages became more evident, making Energy (XLE) 49.16 +2.87% the lead sector on the day with APA Corporation (APA) 20.15 +7.81, Marathon (MRO) 12.08 +7.19%, Occidental (OXY) 26.65 +6.69%, Hess (HES) 71.39 +5.34%, Schlumberger (SLB) 28.11 +4.97% dominating the S&P500. Interest rates declined as exhibited the 10-Year Note Index (TNX) 13.24 -.17 which in turn benefited Financials (XLF) 38.01 +1.14% with American Express (AXP) 161.45 +1.72%, Travelers (TRV) 158.90 +1.62%, and JPMorgan (JPM) 159.86 +1.59% all in the top quartile of the DJIA. Consumer product technology platform Aterian (ATER) 17.98 +52.37% ran higher on a crowdsourcing short squeeze.
Tuesday, Sept. 14, 2021 – DIA 346.47 -.81%, QQQ 375.26 -.28%, SPY 444.17 -.54%, IWM 220.04 -1.27%
The Consumer Price Index (YoY) came in as expected at +5.3%, while CPI Ex-Food & Energy came in slightly better than expected +4.0% v. +4.2%. Interest rates moved to the downside along with the 10-Year Note Index (TNX) 12.77 -.47 showing a clear outsized decline. The major equity market indexes declined on continued concerns of the C-19 Delta variant. The Russell 2000 (IWM) (noted above) led to the downside. Every S&P 500 sector was lower on the day with Energy (XLE) 48.45 -1.44% down the most on profit-taking /consolidation from the previous day’s outperformance. In reaction to continued regulatory pressure from China on the semiautonomous city of Macau, the shares of gaming and hospitality companies that do business there came under heavy selling pressure with Wynn Resorts (WYNN) 92.25 -10.85%, and Las Vegas Sands (LVS) 38.71 -9.75% taking the brunt of the day’s action. In a reversal of the previous day’s short squeeze Aterian (ATER) 10.96 -39.04% declined in what may have been the end of a speculative blow-off move (at least in the short-term).
Wednesday, Sept. 15, 2021 – DIA 348.82 +.68%, QQQ 378.05 +.74%, SPY 447.88 +.84%, IWM 222.03 +.90%
Markets rallied broadly and interest rates rose on a good New York Empire Manufacturing Survey which beat consensus handily at 34.3 v. 18 anticipated. Energy Services (XLE) 50.26 +3.74% rose in sympathy to lead the S&P 500 after a one day pause, as WTI crude oil continued its rally of $72.65 +3.11%. EOG Resources (EOG) 75.31 +8.33%, Diamondback (FANG) 81.45 +7.8% Marathon Oil (MRO) 12.63 +7.67% all led the S&P 500. In all, the top 8 stocks in the index were oil and oils services related. Gaming & Hospitality stocks with exposure to Macau continued under selling pressure Wynn Resorts (WYNN) 86.44 -6.30%, MGM Resorts (MGM) 40.30 -2.49% moved lower. In response to investor focus on higher prices for uranium, small-cap uranium companies were some of the best on the day, Uranium Energy (UEC) 3.69 +13.89%, Ur-Energy (URG) 2.05 +11.41%, Energy Fuels (UUUU) 8.33 +11.36%. In large-cap activity, drug store chain Walgreen’s Boots Alliance (WBA) 50.12 +3.94% moved higher while leading the DJIA as the Biden administration met with executives from some of the nation’s largest employers to advance his COVID-19 vaccination agenda.
Thursday, Sept. 16, 2021 –DIA 348.18 -.18%, QQQ 378.31 +.07, SPY 447.17 -.16%, IWM 222.19 +.07%
Initial Jobless claims came in slightly above expectations at 332K v. 328K expected. Retail sales came in at +.7% better than the down -.8% expected. Markets were mixed on the day marking time before triple witch expiration Friday. With the better than expected retail number, Consumer Discretionary (XLY) 184.76 +.46% was the lead S&P500 sector on the day with craft retailer Etsy, Inc. (ETSY) 224.15 +3.10% leading that index. On the back of a strong dollar, Gold dropped to 1753.8 -2.28% while breaking below the important 1800 support. As a result gold miners also came under selling pressure with Newmont (NEM) 55.43 -3.95% the worst performer in the S&P500. WTI crude oil was stable and consolidating from Thursday’s advance, and so energy names Cabot Oil (COG) 19.37 -3.05%, and Baker (BKR) 24.39 -2.94% both came under some profit-taking from the strong advance during the week.
Friday, Sept. 17, 2021 – DIA 345.64 -.52%, QQQ 373.83 -1.18%, SPY 441.40 -.97%, IWM 222.48 +.13% The Michigan Consumer Sentiment Index came in weaker than expected at 71 v. 72.2. Interest rates rose; the 10-Year note index (TNX) 13.70 +.39 rose. The markets traded in the higher volume environment of a triple witching expiration and ended lower after few intermittent rally attempts closing lower for the second week. Healthcare (XLV) 133.00 +.10% a sector known for its defensive posture was the only S&P500 sector to close positive for the day. Amgen (AMGN) 219.38 +.93% and United Healthcare (UNH) 420.16 +.80% led the DJIA. Diagnostics and research firm Thermo Fisher (TMO) 596.60 +6.49% led the S&P500 by raising guidance at its investor day. In the energy sector, Diamondback (FANG) 82.62 +3.18% rallied on a buyback plan to return cash to shareholders. Basic Materials (XLB) 81.33 -2.06% was the worst S&P500 sector. Nucor Steel (NUE) 104.89 -4.49% sold off on relatively good news and guidance for earnings into the end of the year. Technically, the stock is testing an uptrend line from February. Also to the downside, Copper and gold miner Freeport-McMoRan (FCX) 33.05 -3.64% is in a technically weak position after underperforming since May.
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